Trade of the Day: Williams Companies Inc (NYSE:WMB)

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My indicators continue to give bullish readings this week while the market remains strong in the face of a lot of geopolitical conflict. I think the key is that the market currently has good breadth. In other words, the ratio of advancing issues to declining issues line is really good, which usually means that the market rally should continue. At this point, breadth is so strong that it’s really causing the market to support itself.

Every week, I scan thousands of potential option plays. And today, I’ve latched on to a natural gas play that’s breaking to new highs after a period of consolidation on the six month chart. With the underlying stock trading at a deep discount and the proverbial market wind at our back, now is the time to establish a position using options.

Buy to open the Williams Companies (WMB) Sep 26 Calls (WMB160916C00026000). After entry, take profits if the stock price hits $27.30.

InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect “bridge” between investing in ordinary stocks and the turbocharged world of options trading. In Maximum Options, he brings you his personal trades using high-probability, “professional grade” strategies.

Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.


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